The Industrial Market: Characteristics, Segments and Strategies

He Industrial market Is made up of users belonging to organizations that buy goods and services to make other kinds of products.

In this market, the manufacturer is the one that makes the acquisition of, for example, a group of chemical substances from which it will produce fertilizers that are destined to the agricultural market or also to individuals who will use it in their gardens.

By industrial user is known that person who, within that market, makes the purchase of its products. For example, sites that purchase floor cleaner from a company.

There is therefore an environment in which this market is developed on a large scale. Products sold are manufactured in high quantities but have a select number of buyers. In fact, manufacturers take into account all of their users who are also within the industrial environment.

The purchase of products is done to expand the variety of goods and services, resell them to other customers and carry out operations that concern the company. Given the vast amount of products circulating, companies need each other to manufacture their products.

Therefore, the industrial market, although competitive, can lend itself to cooperativity, since the same object needs different types of raw material to go on sale. This type of market is made up of a multitude of companies and corporations ranging from primary sector to the third sector Of the economy.

Characteristics of the industrial market

The industrial market is characterized by six fundamental aspects:

1- Few buyers

The industrial market is not oriented to a large number of buyers as might be supposed, but focuses on the most suitable buyers and in which they can give immediate use to the product.

Therefore, the clients are selected, strategically chosen, so that sales are fruitful.

2- Geographical distribution

It tends to concentrate in very specific urban or rural areas. The industrial market is not ubiquitous, but is in specific places where there may be a large volume of production, which in turn requires a large number of personnel to move around the factory.

3- Future Vision

The industrial market does not pursue the satisfaction of the immediate needs of users; Rather, he wants to think further and so he makes long-term plans that are not susceptible to price sensitivity.

In this way, this type of market always tries to renew itself and reinvent its products, in order not to be delayed.

4- Reduced impact on demand

Specifically in the final demand. The industrial market stands out because it does not influence much in what the users want to buy, since they already have some established requirements that must be taken care of by the manufacturer.

5- High purchasing power

The industrial market is able to concentrate a lot of purchasing power for the simple fact that it has a high budget in which they can have more with less, as it happens with the wholesale companies.

Rationalism

The purchase of the products is not done according to subjective criteria, but according to objective elements. As acquisitions in the industrial market move a lot of money, you need to know what to buy, when and to whom, in order not to lose money.

Segments

The segments of the industrial market are many, but traditionally they are grouped in four:

1- Agricultural market

It is the most indispensable of all, since it is the one that gives sustenance to millions of people and on which there is more pressure, since before the increasing demand of foods it is necessary to increase the production.

In addition, this type of market is affected by the constant conflicts that revolve around the possession of the land and the latifundio.

2- Reseller Market

It focuses on the presence of intermediaries through which products are resold whose profit margin is greater than the initial retail price.

Although it is true that it can lend itself to scourges such as speculation and hoarding in times of scarcity, the reseller market is used to increase factory sales and generate indirect jobs.

3- Market in the official sector

It is the one that deals with the government apparatus and its respective dependencies that come under its jurisdiction. Businesses with the official sector market can be beneficial provided they have a good knowledge of marketing , But also if there is a bureaucratic and political climate that favors finances.

4- Market of non-profit companies

It refers to a market of heterogeneous companies that can not produce money on the same scale as other markets, since their funds come from charity or donations from individuals (political parties, religious congregations, NGOs, etc.).

Their marketing problems are larger, as their clientele is not easily attracted.

Strategies

The industrial market, like any other, can be nourished by various strategies that can help it grow.

Many of them prioritize the products to sell, while others focus on adapting to the segment to which the company belongs.

There are some that outline a mixed methodology that does not neglect supply and demand, but also consumer prices and other associated factors, such as distribution and means of sales.

Examples of industrial market

Based on the above, the industrial market has a large size, which translates into its great reach.